Vanguard Consumer Discretionary ETF

VCR

Market cap $6.24B

If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the Vanguard Consumer Discretionary Index Fund ETF Shares (VCR), a passively managed exchange traded fund launched on January 26, 2004.

The Vanguard Consumer Discretionary ETF (NYSEARCA:VCR | VCR Price Prediction) and the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY) track US consumer discretionary stocks, both are market-cap weighted, and both hold Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA) as anchor positions.

U.S. Bank Asset Manager Group senior investment strategy director Rob Haworth discusses consumer discretionary stocks and sector on 'The Claman Countdown.' 00:00 Luxury Stocks Underperforming 00:26 The Wealthy Are Still Spending 01:01 Luxury vs.

Consumer discretionary names live or die on whether households feel comfortable opening their wallets, and right now those signals are flashing in opposite directions.

AMZN beats on Q1 revenues with strong AWS and chip growth, but rising AI capex concerns linger. Investors are likely to eye ETF routes for diversified exposure.

TSLA slides despite a Q1 earnings beat as a $5B capex hike tied to AI and Robotaxi ambitions rattles sentiment, pushing investors toward ETF consideration.

Consumer services are marginally undervalued with excellent quality, while auto/components have less compelling fundamentals. The Vanguard Consumer Discretionary ETF offers broad, cap-weighted exposure to the sector, with 286 holdings and a 0.09% expense ratio. VCR and XLY are equivalent for long-term investors, but XLY offers higher liquidity for traders.

Vanguard Energy ETF will benefit, at least temporarily, from high oil prices. Vanguard Consumer Staples ETF is likely to suffer in the near term, but it is filled with reliable businesses.

Vanguard Consumer Discretionary ETF (NYSEARCA:VCR) is down nearly 9% year-to-date, but the story behind that number matters more than the number itself.

Wall Street's consensus forecasts say the information technology and consumer discretionary sectors will beat the S&P 500 in the next year. The Vanguard Information Technology ETF provides exposure to hundreds of companies likely to benefit from artificial intelligence and digital transformation.